Time Warner Cable has agreed to buy DukeNet Communications for $600m in cash to expand its fibre network in the country.
Time Warner Cable is acquiring the business from Duke Energy Corp. (DUK) and investment funds managed by Alinda Capital Partners
Time Warner Cable VP and COO of business services Phil Meeks said business services is a key growth area for the company and this acquisition will enhance company's growing fibre network to better serve customers.
"This acquisition will help us expand our fibre footprint at a price that is consistent with our disciplined approach to M&A, accounting for expected synergies and tax benefits," Meeks said.
Duke Energy's Commercial Business group president Marc Manly said: "The sale completes Duke Energy's transition out of DukeNet, which although a growing operation, is a non-core business to our company."
Duke Energy's regulated utility operations serve about 7.2 million electric customers in six US states, while its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America.
The transaction, which is subject to regulatory approvals, is expected to close in the first quarter of 2014.